[soscap]

What do I do with the deals from an ISO shop that closed and all the sales reps went separate ways? They haven't really submitted much and just a few deals funded with them.

[MCNetwork]

I'd continue paying the ISO for renewals according to the agreement. For any files that are still open after 30 days, those are fair game for you to try and close.

[soscap]

I'd continue paying the ISO for renewals according to the agreement. For any files that are still open after 30 days, those are fair game for you to try and close.

Agreed. But who do I pay? The owner or rep?

[J.Celifarco]

you pay whover the ISO agreement is with whoever you paid for the original deal.. If you pay anyone else you would be in breach of the ISO agreement

[soscap]

you pay whover the ISO agreement is with whoever you paid for the original deal.. If you pay anyone else you would be in breach of the ISO agreement

The ISO agreement is no longer valid. The company closed down.

[jotucker1983]

The ISO agreement is no longer valid. The company closed down.

Does it state in your Broker/ISO Agreement that if the broker "shuts his shop down" that you are no longer going to pay him renewal compensation on active deals? That doesn't make any sense. I would see if the guy is completely gone and not even working the deals, but just because he shuts his shop down to do something else full-time, you are going to stop paying him on renewals?

They haven't really submitted much and just a few deals funded with them.

So what?

I've asked my attorney and legally I'm not required to pay; I am asking because I want to do the "ethical" thing.

The ethical thing is to pay the rep and not try to find "legal ways" to get out of paying.

Hey I'm just saying, you companies who keep trying to find ways to screw around with a man's renewal/reload compensation are only shooting yourselves in the foot.

This type of stuff just gets me ticked off because if you aren't paying guys a damn upfront base pay with benefits, then you should pay out commissions on renewals/reloads for the lifetime of the client like (most of you) state at the beginning of the relationship.

The new deal and renewal compensation are what independent, 100% commission, "we must pay for our own expenses", type of guys need in order to survive!

For example, do you know that some guys aren't even profitable until the renewal?

[MCNetwork]

The rep is just an employee of the ISO. You would pay the owner.

[snk1lp]

I would expect a lender to send commissions to an account controlled by the ISO you signed an agreement with. If they provided you a W-9 and voided check in the past, send funds to that account.

Did the rep provide you their personal account? If so, did they sign a referral or ISO agreement with you directly?

[jeffcapital]

Owner Only - That's who you have the ISO agreement with....

[MCNetwork]

Well if you have written proof that the business has been officially dissolved, then I guess all the files are yours now.

[ridextreme]

just because they closed down doesn't mean they're not expecting their renewals to be deposited into their bank account. Did the owner actually say "we're shutting down" or did you hear this through the grapevine?

They can close and office and fire staff but still have an active SOS and business bank account. There are legal questions here that only an attorney can answer correctly.

And why would you ever consider paying the "rep" and not the person who signed the ISO agreement?

[soscap]

just because they closed down doesn't mean they're not expecting their renewals to be deposited into their bank account. Did the owner actually say "we're shutting down" or did you hear this through the grapevine?

They can close and office and fire staff but still have an active SOS and business bank account. There are legal questions here that only an attorney can answer correctly.

And why would you ever consider paying the "rep" and not the person who signed the ISO agreement?

Agreed. I believe they're closed because nobody answers the phones or responds to emails. I've asked my attorney and legally I'm not required to pay; I am asking because I want to do the "ethical" thing. The SOS thing is a good point, I will also check if their bank account is still open. I would pay the rep because on this particular deal I know that the merchant is the reps friend and the deal was acquired because of their relationship (the owner himself told me)

[MCNetwork]

I would pay the ISO and if the funds bounce back because the account is closed, then feel free to pay the rep.

[soscap]

I would pay the ISO and if the funds bounce back because the account is closed, then feel free to pay the rep.

Thanks Archie!

[Sean Cash]

I would pay the ISO and if the funds bounce back because the account is closed, then feel free to pay the rep.

No, this is terrible advice. You have no obligation to the "reps," only the entity you have an agreement with or any assignee of the agreement. If the ACH bounces back, set those funds aside in a payable account until the entity provides new payment instructions. Does your ISO agreement allow the entity to assign the commissions? Or is there a survivor clause such as if the entity ceases to exist, can the members/former members still accept payment on the terminated entity's behalf?

At some point, someone will come calling for those commissions so don't pay them to random people just because they used to work for the ISO.

[gail_waters]

No, this is terrible advice. You have no obligation to the "reps," only the entity you have an agreement with or any assignee of the agreement. If the ACH bounces back, set those funds aside in a payable account until the entity provides new payment instructions. Does your ISO agreement allow the entity to assign the commissions? Or is there a survivor clause such as if the entity ceases to exist, can the members/former members still accept payment on the terminated entity's behalf?

At some point, someone will come calling for those commissions so don't pay them to random people just because they used to work for the ISO.

def agree, i could def see them isos rep possibly looking for it, maybe not, but its supposed to go to the business and vc that was signed with the iso agreement, i somehow doubt they closed the account done, then its up to that owner to pay his rep on the deal.

[MCNetwork]

No, this is terrible advice. You have no obligation to the "reps," only the entity you have an agreement with or any assignee of the agreement.

Oh well...I never claimed to be an attorney. I just play one in my mind.

[MonthlyFunder]

damn crazy world we live in here when a CEO of a company doesn't even know what to do.. thanks for clarifying to never do business with soscapital..

not trying to be offensive just keeping it 100 with you... do ur company a favor give the title to someone who knows what they are doing. you can be chief posting officer i hear daily funder pays for each post on here..

[gail_waters]

damn crazy world we live in here when a CEO of a company doesn't even know what to do.. thanks for clarifying to never do business with soscapital..

not trying to be offensive just keeping it 100 with you... do ur company a favor give the title to someone who knows what they are doing. you can be chief posting officer i hear daily funder pays for each post on here..

its not that crazy of a question, it doesnt make him a bad ceo, he's worried about his own company and his own deals, not whats going on with every iso and how to pay them

[CreditGuy]

damn crazy world we live in here when a CEO of a company doesn't even know what to do.. thanks for clarifying to never do business with soscapital..

not trying to be offensive just keeping it 100 with you... do ur company a favor give the title to someone who knows what they are doing. you can be chief posting officer i hear daily funder pays for each post on here..

I'm pretty critical, but this is downright stupid. Being CEO doesn't magically make someone omniscient, it just means they are the ultimate decision maker. Using your logic, a person should never ask anyone else for advice since they are the ultimate decision maker when it comes to how to live their life and should know everything.

If you want to come on here and be a prick, at least have well reasoned arguments. Trust me.

[jfeinberg]

damn crazy world we live in here when a CEO of a company doesn't even know what to do.. thanks for clarifying to never do business with soscapital..

not trying to be offensive just keeping it 100 with you... do ur company a favor give the title to someone who knows what they are doing. you can be chief posting officer i hear daily funder pays for each post on here..

By far the most ignorant comment I have ever read. Don't post on here if you are going to say stupid sh**. It was easier for him to ask on here I bet, than for him to ask his lawyer.

So sick of these people that just come on here and talk sh**, even worse when they dont even make sense.

[ridextreme]

damn crazy world we live in here when a CEO of a company doesn't even know what to do.. thanks for clarifying to never do business with soscapital..

not trying to be offensive just keeping it 100 with you... do ur company a favor give the title to someone who knows what they are doing. you can be chief posting officer i hear daily funder pays for each post on here..

So who the **** are you? Some dumb 40 something living in his mother's basement getting ripped all day thinking he's actually bigger than the world? smh. Grow up pal.

[RickyR3712]

Sos has been very good and honest. I do not get your warped thinking to take this as something bad.
You know the list of who will just screw everyone . sos is not on there

[Sean Cash]

Sos has been very good and honest. I do not get your warped thinking to take this as something bad.
You know the list of who will just screw everyone . sos is not on there

Agreed. David at SOS is one of the good guys.

[SimplyMark]

Unless you received a notice of termination from the broker and a waiver on the commissions due or you have sent a notice of termination to the broker, you are probably required to pay them as set forth in the agreement. You should also probably know your agreements inside and out. Even if you terminate the agreement, any pending commissions may still be due depending on the provisions within your agreement. Again, you should probably know your agreement inside and out.

Unless the agreement has been terminated and it specifically states that all commissions pending are no longer payable, you need to send the commissions to the bank account on file.

If they are rejected you then need to hold the commissions. If there is not a provision in your agreement that governs rejected ACH's for the payment of commissions, you should probably wait a reasonable amount of time before you consider them non-payable. A minimum of 90 days is what I would consider reasonable. You also need to make a good faith effort to contact this person. A good-faith effort is at least a couple phone calls to all phone numbers on file and at least two emails.

Note - in the event this broker calls you in six months you should still probably pay the commissions to them at that point. If you make money off of the deal they should too, regardless of how long it takes for them to contact you.

Think about it this way, when you purchase the receivables from a merchant but they default, do you stop trying to collect because they don't pick up the phone? If they called you six months later and said you could start your ACH collections again, you would, right?